Record-breaking FII selling may have peaked, says Nomura. Why the Nifty target could rise

Record foreign institutional investor selling may have reached its peak, according to Nomura, potentially opening the way for a higher target for the Nifty.

Why the view matters

Foreign institutional investor flows are closely watched in the Indian stock market. A possible easing in selling would change the backdrop for the Nifty after a period described as record-breaking.

Nomura’s view also points to the possibility that its Nifty target could be raised. The available information does not provide the current target, a revised level or a timeline for any change.

What remains unclear

The information available does not specify the scale of the selling, the factors behind Nomura’s assessment or whether the expected change in flows has already begun. It also does not detail the conditions that would support a higher Nifty target.

For now, the key market signal is Nomura’s assessment that the intense phase of FII selling may have peaked and that the Nifty outlook could improve.